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About a quarter of consumers said they have “very little” confidence in banks, or no confidence at all, according to a 2015 poll by the analytics company Gallup; roughly 45% said they have “some” confidence.

“A lot of people don’t trust banks, and they don’t trust banks for good reasons,” said Keith Weigelt, a professor at the University of Pennsylvania’s Wharton School of Business who also teaches financial literacy to Philadelphia-area consumers at his program, Building Bridges to Wealth.

“Banks don’t really look out for them as consumers.”

So what if you decide not to use a bank or credit union at all? That may cost you money, too.

Those most likely to be “unbanked” (the term for those who don’t use these accounts) were non-Asian minority families, lower-income households, younger households and unemployed households, according to the FDIC. About 58% of those who are unbanked said a reason was they didn’t have enough money to keep in an account, or meet a minimum balance; 34% said they dislike or distrust banks and about 31% said one reason was their concerns about high or unpredictable account fees.

In particular, consumers seem to be worried about banks’ high overdraft fees. When Pew Charitable Trusts, a nonprofit organization based in Philadelphia, interviewed almost 600 people in 2015, of those who are unbanked, 72% said they turned to an alternative, prepaid cards, instead of traditional banking services because they were trying to avoid overdraft fees. (Banks made about $11.2 billion in fees from consumers’ overdraft and non-sufficient fund penalties in 2015, according to the Consumer Financial Protection Bureau.)

“There is sometimes a class barrier, where people don’t feel comfortable in banks, or a language barrier,” she said. And when banks leave a low-income area, they leave a void that businesses like check-cashing services fill, “There’s a sense that ‘Nobody wants my money,’ which is what a lot of poor people think, and why they end up saving money under their mattress,” she said.

Plus, some consumers can no longer use banks, if they have been blacklisted from them, because of previously bouncing a check, or closing an account and owing the bank money, Weigelt said.

In his work, Weigelt said, even when consumers know banking alternatives charge fees, that can still seem preferable to banks, where some consumers feel fees are “disguised.”

Those who don’t banks or credit unions may have to visit a check-cashing service to cash a check, and those businesses charge fees. (Wal-Mart offers check cashing, but charges $3 for checks up to $1,000 and $6 for larger checks).

Another alternative is prepaid debit cards, which employers can use for direct deposit. But people who use those cards pay an average of $196.50 in annual fees, NerdWallet found. For prepaid cards that don’t use direct deposit, that number is even higher — $488.89 a year.

Fees on prepaid cards vary, said Devan Goldstein, a banking expert at NerdWallet, but many prepaid cards charge for ATM withdrawals, monthly fees or per-transaction costs. It also costs money to purchase a card, and some cards charge a fee when consumers reload them.

(Still, as research from Pew Charitable Trusts has shown, using a prepaid card can be better than getting into trouble with overdraft fees, which could amount to much more.)

Beyond these types of fees on prepaid cards, not using a bank can hurt consumers in other ways, NerdWallet found. Many banks offer services that unbanked consumers are missing out on, including savings accounts, certificates of deposit and secured credit cards, elements of financial health that can help consumers build better credit. And because banks offer conveniences such as automatic bill pay and money-transfer services, not using them can also cost consumers in time.

Alternatives to prepaid cards

For consumers who may be turned down from opening bank accounts because of their past financial behavior, NerdWallet recommends second-chance checking accounts. They are available to people who are on the banks’ “blacklist,” listed in ChexSystems, a consumer reporting agency.

It’s also possible to build credit by using a secured credit card, which are similar to debit cards, but they allow those who use them to build credit. They require the user to pay a security deposit up front; in return, the user will be allowed to spend up to that limit, while building up his or her credit score.

Credit unions, which are not-for-profit and often devoted to community development can be another good option, Weigelt said; however, many credit unions don’t have a large network of branches, so it may be difficult to physically visit a branch in some communities.

There are even some banks, Baradaran said, that are specifically trying to offer a better experience to people who are minorities; OneUnited Bank, for example, which has offices in Los Angeles, Boston and Miami and is also available online, is specifically devoted to supporting black consumers and businesses.

Because so many consumers now have mobile phones and internet access, they can be more selective about where they bank and include online-only banking options, Baradaran said. (Although as Weigelt pointed out, that may not be a tempting option to people with little internet access, or older people who are uncomfortable using apps and websites.)

It’s important to shop around to find the best account to open, Weigelt said. That sometimes isn’t a process consumers go through first, but everyone should ideally “do a price comparison to get the best deal.”

If consumers are able to find a low-cost banking option, that is likely a better choice than doing banking “a la carte,” Baradaran said.

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